01
Money & risk
Is the $750 really guaranteed?
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Yes. It's a contractual floor written into your JV agreement, backed by a Scarus reserve. If retailer profits fall below $750 in any month, the difference is paid out of reserves. Profits above $750 are performance-based — they vary by category and season, but the floor never moves. In 5 years of operations across 312 partners, we have never missed a single $750 minimum.
What does it cost me?
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Nothing to apply. Nothing to sign. $0 upfront, $0 monthly, $0 hidden. The retailer funds the LLC filing, the storefront build, the inventory, the ads, the fulfillment — everything. Your share is calculated on net distributable profits, plus the $750 floor. You never pay Scarus a fee, ever.
Can I really make more than $750/month?
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Yes. The $750 is the contractual floor, not the average. Across our active partners in FY25, the median monthly payout was $912; the top quartile averaged $1,420/month. Performance share above the floor is calculated on net distributable profits per the formula in Schedule B of your JV. No upper cap.
What if Scarus goes out of business?
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Your LLC stays yours — it's filed in your name, not Scarus's. The JV agreement includes a continuity clause (§ 14): if Scarus stops operating, the contracted retailer continues paying you directly or buys out the LLC at the formula price in Schedule C. Our reserve fund is held in a segregated account, separately audited, sized to cover 6+ months of all contractual minimums.
02
Legal & compliance
Whose name is on the LLC?
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Yours. Filed in Delaware. You receive a physical membership certificate by certified mail. The retailer is the operator (Manager-managed structure); you are the sole Member with a defined membership interest. Your EIN, your bank account, your name on every document.
Can my attorney review the JV before I sign?
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Yes — we encourage it. Over 80 partner attorneys have read this exact JV. We send you the full 14-page agreement at no charge, before you sign anything. If you don't have an attorney, we'll cover the cost of an outside attorney review (up to $400) at signing. No pressure, no deadlines, take a week if you need it.
Is this an MLM, pyramid, or franchise?
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No. It's a joint venture between two parties — you and a vetted retailer — governed by a written contract. There is no recruiting, no downline, no "levels", no products you have to buy. Your income depends only on your retailer's store performance, not on bringing in other partners. We are not a franchisor under the FTC Franchise Rule and not a broker-dealer.
Am I personally liable for the business?
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No. The LLC is a separate legal entity — that's the whole point. § 7 of the JV agreement contains an explicit indemnification clause: Scarus and the operating retailer assume operational, tax, regulatory, and legal liability for all business activities. You sign nothing that exposes you to inventory disputes, customer claims, ad platform issues, or merchant chargebacks.
03
Operations & time
How much time will I actually spend on this?
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Honestly? About 30 minutes a month. The retailer runs the whole store. Your only recurring duties: review the monthly P&L delivered with your ACH payout, answer the occasional CPA or bank verification email, and forward any LLC mail you receive. You will never talk to a customer, never touch inventory, never run an ad.
When does the first payment hit?
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Most partners receive their first ACH payout within 30 days of store launch. The $750 minimum kicks in from the first full operating month, paid every 18th of the month thereafter. Reporting starts on day one. Average first-month payout across recent partners: $847.
Can I have more than one partnership?
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Not at the same time. One LLC per partner, per active 12-month term — it's a banking compliance requirement, not a Scarus preference. After your first 12-month term, if you renew, you stay on a single LLC; if you exit, you can apply for a new partnership 90 days later. We monitor this strictly because duplicate partner LLCs is exactly what gets merchant accounts shut down.
04
Tax, banking & exit
How are payouts taxed?
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Payouts are distributions from a US LLC — reported on a K-1 you receive every January for the prior tax year. Most partners owe income tax on these distributions at their personal marginal rate. We provide a CPA-prepared K-1 at no cost and can refer you to a CPA familiar with single-member LLCs if you don't have one. The retailer absorbs all operational taxes (sales tax, payroll tax, etc.) on its end.
Will this affect my credit, my benefits, or my main job?
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No impact on your credit. We do a soft pull only (no hard inquiry, no score impact). The JV is structured so the LLC doesn't appear on your personal credit report. For benefits (SSI, SSDI, Medicaid, EBT, Section 8): you should disclose the additional income to the relevant agency. We provide a payout history letter for any required documentation. For your main job: this is passive income via an LLC, not a competing employer relationship — it does not violate standard non-compete clauses, but check your employment agreement if you're in doubt.
What if I want out before the 12 months are up?
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Early exit is allowed in three documented cases: medical emergency, relocation outside the US, or retailer material breach. In any of these, you exit with zero penalty and keep all payouts already received. Outside of those cases, the 12-month term is binding (you'd forfeit only the final months' performance share, never the contractual minimum). After 12 months, either side can exit clean with 30 days notice. You keep the LLC, or sell it back per the Schedule C formula.
Can I see real partner references before I sign?
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Yes. We don't gatekeep references. Once your application clears the 48-hour review, we connect you personally with 2–3 active partners in your state or niche — by email, phone, or video, your choice. You ask them anything: payout amounts, what they had to do, what surprised them, what they wish they'd known. If we can't put you in touch with at least 2 verified partners willing to talk, we'll refund your time and walk away ourselves.
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